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A Comprehensive Guide To Procurement In Construction: Methods, Challenges And Best Practices

Posted on by John Hudson

Procurement is a critical element in construction projects, encompassing the process of sourcing and acquiring materials, equipment, and services necessary to complete a project. Selecting the right procurement method can significantly impact a project’s cost, timeline, and quality. In this guide, we’ll explore the fundamentals of procurement in construction, common challenges, procurement methods, and best practices for a successful project.

What is Procurement in Construction?

  • Procurement in construction refers to the strategic process of acquiring materials, resources, and subcontractors for a project. It involves planning, sourcing, and managing vendors and suppliers to meet the project’s budget, quality, and time requirements. Proper procurement ensures that the project remains on schedule and within budget while meeting quality standards.

Common Procurement Methods in Construction

  • Traditional Procurement: Also known as Design-Bid-Build, this method involves separating the design and construction phases. The client first hires a designer, then selects a contractor through a competitive bidding process. This method provides clarity but can lead to longer project timelines.
  • Design and Build: In this approach, a single contractor is responsible for both the design and construction, promoting collaboration and faster project delivery. It’s ideal for clients who prefer a streamlined process and a single point of contact.
  • Construction Management: The client hires a construction manager who oversees the project and coordinates various contractors. This method is often used in complex projects that require specialized expertise.
  • Integrated Project Delivery (IPD): IPD is a collaborative approach where all parties—client, contractor, designers—work together from the start, sharing risks and rewards. This method promotes transparency and can lead to innovative solutions.
  • Public-Private Partnership (PPP): Commonly used for large-scale public projects, PPP involves collaboration between government and private contractors, sharing both the costs and responsibilities.

Challenges in Construction Procurement

  • Supply Chain Disruptions: External factors like economic shifts, material shortages, and geopolitical issues can disrupt supply chains, leading to delays.
  • Cost Fluctuations: Price volatility, particularly for raw materials like steel and concrete, can impact project budgets.
  • Quality Control: Balancing quality with cost-efficiency is often challenging, especially when working with multiple suppliers.
  • Compliance and Regulations: Construction projects must adhere to local and international regulations, which can vary and impact procurement decisions.
  • Communication Gaps: Miscommunication between stakeholders, such as designers, suppliers, and contractors, can lead to errors, delays, or rework.

Best Practices for Effective Procurement in Construction

  • Conduct Thorough Market Research: Research suppliers and materials to identify potential risks and opportunities. This can help you find reliable vendors and anticipate cost fluctuations.
  • Use Technology for Efficiency: Implement procurement software to streamline the tendering, sourcing, and management process. This can improve data accuracy and transparency, enabling better decision-making.
  • Establish Clear Communication Channels: Ensure clear, consistent communication among all stakeholders to avoid misunderstandings and foster collaboration.
  • Prioritize Sustainable Sourcing: Opt for sustainable materials and suppliers to reduce environmental impact and meet regulatory standards.
  • Develop Risk Mitigation Strategies: Have contingency plans for common risks, such as supply chain disruptions and cost changes. Consider fixed-price contracts or bulk-buying agreements to manage cost stability.

Procurement is a vital component of a successful construction project. By selecting the right procurement method, anticipating challenges, and implementing best practices, you can ensure your project runs smoothly and efficiently. From traditional methods to collaborative approaches like IPD, understanding each option’s advantages and challenges can help you make informed decisions.

Need help with your construction procurement process? Contact our team for expert advice on procurement strategies, supplier selection, and risk management tailored to your project needs. Let’s ensure your next project is completed on time, within budget, and with the highest quality.

Related Blog: 5 Reasons Why You Aren’t Winning Tenders for Roofing Work

Understanding Construction Contracts: Key Terms, Clauses And How To Avoid Costly Pitfalls

Posted on by John Hudson
Construction contracts can be complex, with multiple clauses and industry jargon that can make it difficult to navigate. Whether you’re a contractor, project manager, or property developer, understanding the essential terms and clauses is crucial to safeguarding your interests, ensuring compliance, and avoiding unexpected costs. This blog will break down the basics, explain common clauses, and offer practical tips to help you make informed decisions when entering construction contracts.

What is a Construction Contract?

  • A construction contract is a legally binding agreement between parties involved in a construction project. Typically, this includes the project owner and the contractor, though other stakeholders, like architects and engineers, may also be involved. It outlines the scope of work, project timelines, payment terms, and other essential details that define each party’s responsibilities.

Types of Construction Contracts

  • Fixed-Price (Lump Sum) Contracts: These contracts set a fixed payment amount, offering stability for budgeting but less flexibility for changes.
  • Cost-Plus Contracts: In these agreements, contractors are reimbursed for actual project costs plus an agreed-upon profit margin, though costs may fluctuate.
  • Time and Materials Contracts: Often used for projects with an undefined scope, this contract type charges the client based on time spent and materials used.
  • Unit Price Contracts: Frequently used in civil construction, these contracts are based on set prices for each unit of work (e.g., per square meter).

Key Clauses to Look Out For

  • Scope of Work: Clearly define the project scope to prevent scope creep, where additional tasks are added without proper compensation.
  • Payment Terms: Detail payment schedules, retainage, and terms for progress payments or milestones.
  • Change Orders: Establish procedures for any changes in work scope, including approvals and cost adjustments.
  • Dispute Resolution: Specify the methods (e.g., mediation, arbitration) to handle conflicts and avoid lengthy legal disputes.
  • Termination Clauses: Outline circumstances under which the contract can be terminated by either party to protect your rights.
  • Insurance and Liability: Make sure to understand who holds responsibility for risks, delays, and damages on-site.

How to Avoid Common Pitfalls in Construction Contracts

  • Understand the Details: Review each clause and seek legal advice if necessary, especially for high-value projects.
  • Negotiate Terms that Reflect Reality: Avoid agreeing to unrealistic timelines or costs, and negotiate terms that realistically match the project demands.
  • Document Everything: For any changes, document them thoroughly with a formal change order to avoid payment disputes later on.
  • Include Contingency Plans: Factor in unforeseen events like delays or material shortages, and ensure your contract has provisions to address them.

Construction contracts are essential to the success of any project. By familiarizing yourself with key terms and clauses, you can protect your business interests, avoid potential pitfalls, and ultimately ensure smoother project execution. For additional help, consider consulting a professional specializing in construction law to review and negotiate your contracts.

If you’re looking for assistance in drafting or reviewing your construction contracts, reach out to our expert team. We offer tailored contract analysis and bid writing support to help you navigate construction agreements with confidence.

Related Blog: How to Tender for Scaffolding Work

The 5 Most Common Types of Structural Engineering Tenders You Could Win

Posted on by John Hudson

Are you aware of the types of structural engineering tenders you can bid for?

Knowing the type of structural engineering tenders buyers procure is a good starting point when finding new opportunities. In this blog, we have listed the five most common types of structural engineering tenders out there.

Already familiar with structural engineering tenders and want to get started?

To begin your search for new business opportunities, you can sign up to our Construction Tenders portal and get started.

The 5 most common types of structural engineering tenders you can source:

  1. Building

You will find that structural engineering tenders for buildings, is the most common type of tender you can source. The contracts involve working on the design and construction of the building so that it is structurally sound. This could be anything from a new build housing project to office buildings, to skyscrapers.

  1. Aeronautical

Structural engineering tenders within this sector can refer to both the vessels and the associated equipment (i.e., satellites). Services will involve ensuring the structure is stable, but also ensuring that it can operate consistently under the right conditions. Aeronautical structural engineering tenders will usually be based in airports or airfields. Anywhere that uses aircraft vessels. This could even mean space vessels.

  1. Nautical

These tenders could be for passenger vessels, cargo ships or even submarines. Basically, any vessels that are used out at sea. However, it could also include other structures that are associated with nautical vessels, such as wind-turbines. This could be design and building-associated equipment to support the vessels out at sea.

  1. Oil and Gas

Structural engineering tenders within the oil and gas industry can involve different projects/services. This could be pipework, working on a rig, or in the gas/oil field. Quite typically, working in this industry usually means working on quite a large structure. The projects will be big and require a lot of time. It could include anything from designing, testing, and inspecting equipment, to general maintenance and building work.

  1. Bridges

Structural engineering tenders here could include the designing of the bridge, inspection of the bridges, or building the structure. It will require you to ensure that the bridge works effectively in the environment it is built for. Ensuring it can withstand the required loads and is safe for use.

Summary

There are five common types of structural engineering tenders that you can bid for. These are:

  • Building
  • Aeronautical
  • Nautical
  • Oil and gas
  • Bridges

You may find that your services can crossover into different sectors. You will need to establish what you and your business can provide, and where your services lie. From there, you can then begin to source new structural engineering tenders.

Where can I find structural engineering tenders?

Are you looking for new structural engineering tenders? Use Construction Tenders to find your next opportunity.

Construction Tenders is one centralised, easy-to-navigate portal hosting public and private leads and tendering opportunities.

You don’t need to rely on CPV Codes. Our Opportunity Trackers manually search and upload tenders from hundreds of websites, making it easier for you to find them. You can find the best tender for you by filtering the results by budget, keyword, and location.

Here are just seven past structural engineering tenders we have sourced on our portal:

Structural Works at 24 St Peters Road, Whitby

Beyond Housing – Yorkshire – Budget: £35,000

Structural & Civil Engineering Consultant at Corby College

Bedford College – Eastern – Budget: £100,000

ESPH SB Civil and Structural Engineer Services for Bexhill Town Hall Renaissance Project (ESPH494)

Rother District Council – South East – Budget: £100,000

Structural Engineer Enquiry – Heanor Hub – Southeast Derbyshire College

Amber Valley Borough Council – East Midlands – Budget: £200,000

Civil Structural Engineering Services for Additional Accommodation at Brideswell NS, Brideswell, Athlone, Co. Roscommon, Ireland

Brideswell National School – Republic of Ireland – Budget: £1,580,000

CP7 Eastern Region Renewals and Minor Enhancements

Network Rail Infrastructure Ltd – London – £4billion

Framework Agreement for the Provision of Aeronautical Engineering Technical Manpower Augmentation

Ministry of Defence – West Midlands – Budget: Undisclosed

A subscription to Construction Tenders will provide your business with:

  • Access to all unique, private, and public sector opportunities within the construction and engineering industry.
  • An on-hand Account Manager to answer any questions you may have about competitive tendering in construction.
  • A daily email bulletin sent straight to your inbox when new tenders are uploaded that day.
  • Discounted support from Hudson Succeed, our bid writing division.
  • 20-minutes free bid management consultancy each month.

Get in touch today to book a free live demo.

Want to save even more time? Upgrade to Discover Elite

Upgrade to Discover Elite to ensure you never miss a tender, even when you’re busy. The Ultimate Time-Saving Tool and the Become a Pre-Bid Master packages can improve your competitor awareness and bidding success rate. They can help save you even more time when searching for construction and engineering tenders.

The Ultimate Time Saver package offers:

  • An annual subscription to a maximum of two Discover sector-specific portals. This option best suits a business that overlaps two industries such as Construction and Transport.
  • A maximum of five tender breakdowns per month.
  • Weekly phone calls with your dedicated Account Manager to discuss viable tendering opportunities.
  • Pre-market and award engagement notices monitored on your behalf.
  • Buyer portal management including registration, password management, downloading documents and assessing viability based on your bid or no-bid strategy.

The Pre-Bid Master package offers your business:

  • All the above
  • Up to seven tender breakdowns per month, depending on the package you choose
  • A Strategy delivered by a Senior Bid Manager with a minimum of five years of experience. It will also be managed by our Global Bid Director.

For more information on how Discover Elite can work for you, get in touch today.

Need help writing your next tender?

If you don’t have the resources or time to write a winning bid, why not outsource it? Our sister company, Hudson Succeed, boasts an 87% success rate and has over 60 years of collective bidding experience. They offer four bid writing support packages to help you on the path to success. Whether you’re new to tendering, or simply need someone to proof your written response before you submit – we can help.

Tender Ready

Our Tender Ready programme is designed for those who have never tendered before. This 4-week programme works with you to ensure you have everything in place to tender successfully.

Tender Improvement

Tender Improvement can help if you’re already tendering but aren’t seeing success from your current efforts. Our Bid Writers will assess your previous submissions and supporting documents. They’ll give you feedback and guidance on how to improve, helping you to secure your next structural engineering tender.

Tender Mentor

If you’ve written a tender and need someone to proofread it – Tender Mentor is for you. A Bid Writer will double-check it’s in line with the specification and free of any grammar or spelling mistakes.

Tender Writing

If you’ve found the perfect tender but don’t know where to start – we can help. Send the specification over to us and our Bid Team will do the rest. They’ll let you know what they need from you and provide you with a full breakdown. They’ll even submit it on your behalf, leaving you more time to focus on your business.

Get in touch to find out more information.

We actively source tenders for the following sub-sectors:

Bricklaying Tenders & Advice for SMEs

Posted on by John Hudson

How to Win Bricklaying Tenders as the Construction Industry ‘Bounces Back’ 

Bricklaying tenders are a gateway for growing your brickwork business. But is now a good time to grow as an SME, as we head into another National Lockdown?

At first glance, you may not think so. Coronavirus and lockdown restrictions had a significant impact on businesses in the construction industry earlier this year. In March, major construction projects ground to a halt across the country.

The fallout from these mass shutdowns continues to have an impact on the construction industry. As we enter a second National Lockdown, you’re probably wondering, will history repeat itself?

It’s understandable to be concerned about what the future of bricklaying looks like in 2020. What do the latest government restrictions mean for your sector? And how can you secure bricklaying tenders that are right for your business during a second National Lockdown?

Well, we’ve checked the stats with your bricklaying business in mind. Now is as good a time as any to win bricklaying tenders and grow your business. Here’s why – and how to do it.

What is the construction ‘bounce-back’?

Many industries are still in sharp decline due to coronavirus. It can feel like there’s nothing but bad news for businesses at the moment. But this simply isn’t true – the construction industry is back in growth-mode.

It’s been coined the construction ‘bounce-back’ as the industry, quite literally, rebuilds itself.

This summer, the Federation of Master Builders (FMB) reported that almost 50% of SME builders were enjoying an uptick in demand. This state-of-trade survey also specified that 40% expected their workload to increase further in Autumn.

Did this increase happen? In short – yes! Let’s look at this in more detail.

To measure the construction bounce-back, we can look at the PMI (Purchasing Managers’ Index) of the construction industry. This index summarises economic trends in the manufacturing and service sectors and shows whether market conditions are expanding or contracting. Ultimately, the PMI provides information about current and future business conditions to companies, analysts, and investors.

The Construction PMI in the UK shows the industry has bounced back and is operating at above-average levels:

  • As reported by the IHS Markit/CIPS UK, the UK Construction PMI hit 53.1 in October 2020. This comes after a 12-year average of 51.11 between 2008 and 2020, and an all-time low of 8.20 in April of 2020.
  • Construction companies report feeling optimistic towards their prospects for the next 12 months. In fact, business optimism has hit a 3-year high in the construction industry. As Markit Economics reported, there are high-hopes for economic recovery and an overall reduction in COVID-19 disruption going into 2021.
  • As the construction industry avoids shutdown during the second National Lockdown, business optimism is set to remain high for the sector. Build UK announced that the latest government restrictions will have no direct impact on their business or trading. Operations across all Build UK sites remain fully open to support the construction industry.
  • New orders in the construction sector are also seeing their highest increase since December 2015. This is largely due to delayed projects that were halted earlier in the year amid the initial COVID-19 crisis.

What does this all mean for bricklaying tenders?

All of this is good news for bricklayers. But it gets better:

Housebuilding was the best-performing area of all construction activity in October 2020, scoring a PMI of 62.4. You don’t need to be a consultant to see that’s a great figure. The speed of recovery for housebuilding has eased only slightly since September 2020. This means the bounce-back is showing very little signs of slowing as of November 2020.

This revival is due to pent up demand from stalled or cancelled projects. The boost also stems in part from the fact that housing market conditions have improved in recent months.

As these projects spring into action, they bring a surge of opportunities. Now is the time to source bricklaying tenders and grow your business.

How do I find bricklaying tenders during the bounce-back?

New opportunities in the sector are set to steadily increase as we enter 2021. So, how should you set about finding construction contracts effectively?

Make sure you’re using a portal that is specific to your industry. This will save you countless time trawling through irrelevant results when you could be growing your business.

Signing up to our Construction Tenders portal provides you with a service that is tailored to your needs from day one. Our opportunity trackers (humans, not robots!) manually search the latest bricklaying tender opportunities every day so you don’t have to. This means every result you see is specific to your sector and relevant to the services you offer. You’ll receive updates straight to your inbox.

Opportunities for bricklaying tenders may include:

  • Masonry and bricklaying work
  • Programme and Project Management
  • Renovation Works
  • Grout packers
  • Building and Maintenance Services
  • Training
  • Bricklaying health and safety consultancy

If you have any questions, your dedicated account manager will always be on hand to answer them.

How do I secure the perfect bricklaying tender?

Have you already found a bricklaying tender perfect for your organisation? Do you want to increase your chances of securing the tenders that are right for your business once you’ve found them?

There is a lot to consider when writing a bricklaying tender, especially now.

A key aspect of construction bids in today’s climate is the effective management of coronavirus. Many buyers will expect this to be considered within tender responses, especially now national restrictions are in place again. You must plan how you will analyse risks and communicate risk management strategies to your workforce.

National restrictions impact how construction sites operate. Always refer to the latest government guidance when planning your bricklaying tender response. You may need to consider:

  • Planning your approach in advance
  • Strategically reducing delivery frequencies
  • Minimising contact between people
  • Managing staff schedules differently.

Our Hudson Succeed division provides writing support and professional consultation to help you maximise your chances of success. Our dedicated team of bid writers have extensive experience delivering excellent tenders with an 87% success rate.

Whether you are tendering for the first time or have tendered before, we have a service suitable for you. We tailor each service to your needs through the following tender packages:

Get in touch with Construction Tenders

Book a free live demo of Construction Tenders today. Clients receive a daily bulletin with construction leads straight to their inbox when new tenders are uploaded. The bulletin contains all the relevant construction opportunities that we have sourced that day.

Below are previous bricklaying tenders sourced on our portal:

Early Market Engagement Questionnaire – Environmental Improvement Works

Believe housing- North East- Budget: Undisclosed

31-07-2020

Environmental Facilities Work To 187 Properties Oakridge Sketty, Swansea

City and County of Swansea- Wales- Budget: Undisclosed

17-07-2020

Construction of a replacement retaining wall – Belmont, Dreemskerry Road, Maughold

Isle of Man Government- International- Budget: Undisclosed

25-06-2020

Boundary Wall – Clare Court (v2)

Stroud District Council- South West- Budget: Undisclosed

08-07-2020

Take Down and Rebuild Defective Retaining Wall at Parwich Primary School, The Square, Parwich, Ashbourne

Derbyshire County Council- East Midlands- Budget: Undisclosed

11-06-2020

We actively source tenders for the following sub-sectors:

Contact us today and allow us to help you grow your business with Construction Tenders.

The Construction Talent Retention Scheme – Protecting workers in Construction

Posted on by John Hudson

The Construction Talent Retention Scheme – Everything you need to know

The Construction Talent Retention Scheme was announced by Chancellor of the exchequer, Rishi Sunak. The aim of the scheme is to protect workers in the construction industry as the UK begins to rebuild itself and emerge from the COVID-19 pandemic.

The Co-Chair of the Construction Leadership Council (CLC), Andy Mitchell said: “This is a great example of what we can achieve when we work collaboratively with government and we look forward to continuing in this spirit when the proposals and recommendations of our broader Roadmap to Recovery are published. In the meantime, we will work with our members and industry stakeholders to encourage the scheme’s use and success.”

How will the scheme work?

The Construction Talent Retention Scheme is due to launch, formally, later this month. The scheme will be in the form of an online portal that will work to protect those who work in the construction industry. The portal will do this in the following ways;

  • Advertising vacancies

Companies can use the portal to advertise open vacancies and employ workers that may be at risk of redundancy.

  • Help construction projects

The portal will help to place at-risk workers on construction projects to prevent a loss of talent in the sector.

  • Inter-trading with talent

The Construction Talent Retention Scheme system will also allow businesses to “loan” workers to other companies who can utilise their skills.

  • Transfer workers into construction

The system will aim to help workers from different industries to transfer to the construction sector. This means that workers who have lost jobs, or who are at risk of being made redundant, will have a route into a new career.

The foundations

The foundations of the Construction Talent Retention Scheme are based on a tried and tested model. A similar scheme has been used previously to safeguard workers in the aerospace and automotive industries.

The Chief Executive for the Association for Consultancy and Engineering, Hannah Vickers said: “This is a proven solution with a strong track-record in other sectors, cross-industry support and pledges from our leading employers. It is vital we keep the skills in our sector to avoid a talent drain and is the only way we will be able to ramp-up activity to lead the recovery of the wider economy and deliver growth through new buildings and infrastructure.”

Funding for the scheme has been secured until the end of the financial year. The platform will be free for any organisation to use.

Finding construction contracts

Are you currently looking for construction contracts in your field? Our Construction Tenders portal takes the headache out of the sourcing process.

Finding new contract opportunities is a full-time job. We know because we have a dedicated team who do this daily to ensure your business never misses a construction lead.

Below are previous construction tenders sourced on our portal:

West Thames College – M & E Services Tender

West Thames College- London- Budget: Undisclosed

UPVC Guttering, Soffits, Fascias and Accessories

Luton Council- Eastern- Budget: Undisclosed

Replacement or Repair of Existing Over Door Canopies

Raven Housing Trust Limited- South East- Budget: Undisclosed

Quick Quote – Ronaldsway Airport Fire Station Slipway Refurbishment

Isle of Man Government- International- Budget: Undisclosed

Quick Quote – Castletown Harbour – Light Column Replacement

Isle of Man Government- International- Budget: Undisclosed

Book a free live demo to tour the system and see how the portal can help your construction business.

We source tenders for services including;